LRB-1859/2
JK:kmg/jld/wlj:jf
2003 - 2004 LEGISLATURE
April 23, 2003 - Introduced by Representatives Lassa, McCormick, Vruwink,
Ainsworth, Huber, Seratti, Berceau, Townsend and Gielow, cosponsored by
Senators Cowles, Harsdorf, Schultz, Wirch and Stepp. Referred to
Committee on Ways and Means.
AB298,1,2
1An Act to amend 71.07 (3g) (a) 2., 71.28 (3g) (a) 2. and 71.47 (3g) (a) 2. of the
2statutes;
relating to: claiming the technology zone tax credit.
Analysis by the Legislative Reference Bureau
Under current law, a business that is located in a technology zone and certified
by the Department of Commerce to receive tax credits, may claim such credits in an
amount, as adjusted by the Department of Commerce, that is equal to the sum of the
property taxes, income and franchise taxes, and sales and use taxes that the business
paid in the taxable year. Under current law, generally, partnerships, limited liability
companies, and tax-option corporations do not pay income or franchise taxes, but,
instead, pass their tax liability on to their partners, members, and shareholders who
report the income received from such entities.
Under this bill, a partner of a partnership, a member of a limited liability
company, and a shareholder of a tax-option corporation may claim a tax credit,
related to doing business in a technology zone, that is equal in part to a proportionate
share of the amount, as adjusted by the Department of Commerce, of income or
franchise taxes that the partnership, limited liability company, or tax-option
corporation would have paid in the previous taxable year had the entity been a
corporation. The amount of such taxes is determined by multiplying the entity's
reported net income for the previous taxable year by the income or franchise tax rate
applicable to a corporation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB298, s. 1
1Section
1. 71.07 (3g) (a) 2. of the statutes is amended to read:
AB298,2,92
71.07
(3g) (a) 2. The amount of income and franchise taxes imposed under s.
371.02 that the business paid
in on the return for the
previous taxable year
or, in the
4case of partnerships, limited liability companies, and tax-option corporations, the
5amount of income or franchise taxes that the entity would have paid in the previous
6taxable year had the entity been a corporation subject to the tax imposed under s.
771.23 and determined by multiplying the income that the entity would have reported
8if the entity had been a corporation by the appropriate tax rate under s. 71.27 (1) or
9(2).
AB298, s. 2
10Section
2. 71.28 (3g) (a) 2. of the statutes is amended to read:
AB298,2,1811
71.28
(3g) (a) 2. The amount of income and franchise taxes imposed under s.
1271.23 that the business paid
in on the return for the
previous taxable year
or, in the
13case of partnerships, limited liability companies, and tax-option corporations, the
14amount of income or franchise taxes that the entity would have paid in the previous
15taxable year had the entity been a corporation subject to the tax imposed under s.
1671.23 and determined by multiplying the income that the entity would have reported
17if the entity had been a corporation by the appropriate tax rate under s. 71.27 (1) or
18(2).
AB298, s. 3
19Section
3. 71.47 (3g) (a) 2. of the statutes is amended to read:
AB298,3,620
71.47
(3g) (a) 2. The amount of income and franchise taxes imposed under s.
2171.23 that the business paid
in on the return for the
previous taxable year
or, in the
1case of partnerships, limited liability companies, and tax-option corporations, the
2amount of income or franchise taxes that the entity would have paid in the previous
3taxable year had the entity been a corporation subject to the tax imposed under s.
471.23 and determined by multiplying the income that the entity would have reported
5if the entity had been a corporation by the appropriate tax rate under s. 71.46 (1) or
6(2).
AB298,3,88
(1) This act first applies to taxable years beginning on January 1, 2003.
